Chubb internal data suggests manufacturers are under-purchasing key insurance products, namely Errors and Omissions and Cyber, while new research suggests a more holistic solution is needed
WHITEHOUSE STATION, N.J., Nov. 13, 2018 /PRNewswire/ -- A study from Chubb and The National Center for the Middle Market (NCMM) finds that although manufacturing is experiencing growth, there are many interconnected challenges leading to new risks. The research also suggests that manufacturers may not be fully prepared to confront some of these new and emerging risks, including financial and competitive challenges, cybersecurity exposures, regulatory uncertainties, advanced manufacturing techniques and workforce development issues.
The report, titled, "Middle Market Manufacturing: How to Thrive in a Transforming Environment," presents key findings and shares valuable insights and best practices for manufacturers.
"Middle market manufacturing has seen steady growth in recent years with an improved business climate," said Mike Williams, Executive Vice President and Manufacturing Industry Practice Leader, Chubb North America. "But with this growth also comes challenges that are causing manufacturers to rethink and evolve nearly every aspect of their operations. Manufacturers need new strategies to manage and mitigate risks so they can free-up their resources to take better advantage of opportunities. This report explores some of the more significant emerging risks and provides insights to help mitigate against these exposures."
By better understanding the increased potential for growth and how to manage and mitigate new risks, U.S. middle market manufacturers can position their businesses to excel and achieve new levels of performance.
"The manufacturing environment is much more complex today than it was five years ago, largely due to the competitive challenges of talent, trade and technology," said Thomas A. Stewart, Executive Director of NCMM. "The midsized manufacturers best-positioned for success are adept at turning these challenges and risks into new opportunities."
According to the NCMM, within the U.S., manufacturing represents approximately 17 percent of middle market companies, compared to about 12 percent of the economy as a whole. This underscores the importance of manufacturing's success as a driver of a healthy economy.
Chubb has launched a new resource center to share the study results and offer new tools to agents and clients to help them better understand emerging risks. The site features an interactive risk survey, a benchmarking report and a whitepaper summarizing the study's findings. For more information, visit the resource center here.
About the National Center for the Middle Market (NCMM)
The National Center for the Middle Market is a collaboration between The Ohio State University's Fisher College of Business, SunTrust Banks, Cisco Systems, Inc., and Grant Thornton LLP. It exists for a single purpose: to ensure that the vitality and robustness of Middle Market companies are fully realized as fundamental to our nation's economic outlook and prosperity. The Center is the leading source of knowledge, leadership, and innovative research on the middle market economy, providing critical data analysis, insights, and perspectives for companies, policymakers, and other key stakeholders, to help accelerate growth, increase competitiveness and create jobs in this sector.
Housed at The Ohio State University's Fisher College of Business, the National Center for the Middle Market is the first center of its kind in the nation. The Center enthusiastically serves middle market firms, students, academic researchers, policy makers, the media and other key stakeholders with interests in the health and well-being of the middle market. The Center is fully committed to funding and distributing the most credible open-sourced research, dynamically creating new knowledge, providing programs that drive value for middle market companies, and offering a well-informed outlook on the health and future of the middle market via the Middle Market Indicator.
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London and other locations, and employs approximately 31,000 people worldwide. Additional information can be found at www.chubb.com.